Intermediaries have told Mortgage Introducer that although fixed rates are historically more expensive than variable and tracker rate products, over the last six months in particular the balance has shifted and the best remortgage rates now fall within the fixed rate category.
Rob Clifford, managing director of Mortgageforce, believes the positive moves in swap rates has led lenders to extensively re-price their fixed offerings.
He said: “Normally rates reflect a premium for the privilege of the certainty of fixed deals but at the moment, with rates this low, why not take advantage – especially as they are unlikely to go much lower.
“There have been lower fixed rates but they’ve been attached to expensive early repayment charges, arrangement and exit fees. Now we are seeing a plethora of brilliantly-priced fixed deals.”
According to Simon Chalk, mortgage planner at Mortgage Portfolio Services, a search on Trigold reveals this clearly. He said: “Even when I have filtered for goodies such as free valuation, free legals, overpayments and so on, you can see the best remortgage rates are all fixed.”
But Brian Murphy, head of lending at the Mortgage Advice Bureau, said while there are attractive fixed rates in the market, the most important factor should be what is right for the client.
He said: “It’s horses for courses. If a client is fixed rate minded then fine, but less cautious people may sit on the fence or go for tracker rates now as a rate fall in August would be beneficial to them.”
